'We Will Create An Investor Friendly Atmosphere'

In an exclusive conversation with P R Subas Chandran, Andhra Pradesh's chief minister, Dr Y S Rajasekhara Reddy draws attention to India's most emerging state in hospitality and tourism and what his government is doing to facilitate this growth…

Will the incentives propagated in the Tourism Policy become a reality or remain a myth?

We have paid the cash incentive of Rs 20 lakh to each tourism related project which was hanging in uncertainty for five long years due to the previous regime. The payment of tax holidays and power subsidy are on the top of our agenda for decision. In a short while, entrepreneurs from the hospitality and tourism sector would realise that the state is indeed open to private sector participation. And that, the current government will make the incentives propagated in the Tourism Policy a reality.

What according to you are the new landmarks of Andhra Pradesh tourism?

The most significant high point for the state at the moment would be our venture at Tirupati. Costing a whopping of Rs 200 crore, the project is aimed at giving tourist a spiritual atmosphere under a single canopy. A three star and two star hotel, Krishna thematic centre, rope way and many more spirituality related effects have added to the project. Second on cards is the fast emerging location near Taramati Baradari. With an allotment of Rs 40 crore, we believe that this project would attract a lot of international business tycoons. It is a place where art, culture and creativity is harmoniously blended and presented in every inch of the convention centre to accommodate 5000 participants. Another spectacular upcoming project is the Rs 24 crore tourism plaza. This centre will be a potpourri accommodating anything and everything in tourism.

Has the government allotted a considerable budget as support to develop its tourism plans?

Realising the importance of travel and tourism, the government has increased the budgetary support from Rs 36.13 crore in 2003-04 to Rs 64.84 crore in 2004-05 and to Rs 87.19 crore in 2005-06.

How would you evaluate your state's growth in the travel and tourism industry?

With the continuous efforts of tourism department, domestic tourist arrivals have increased significantly, from 63.3 million in 2002 to 74.1 million in 2003 and 84.9 million in 2004. Andhra Pradesh Tourism development Corporation, which was in red, is now making profit.

Will this sudden mushrooming of tourism addresses disturb the ecological balance?

We have been extremely careful to keep the ecological impact to the bare minimum. For example, we have identified a 250-acre land in Vikarabad, which we intend to develop as a health tourism destination. It will showcase concepts such as yoga, meditation and alternate medicines like ayurveda, naturopathy and acupuncture. The USP of the project is low intensified eco tourism amid thick forest without disturbing nature. Similarly, we have come up with a unique concept of campsite or camp ground (Tent Rooms), a temporary three star accommodation inside the forest near Araku valley.

You have great plans to promote health tourism. The infrastructure for health tourism is yet to take a shape. What is the government doing to facilitate infrastructure in the state?

We have already identified some national and international investors to convert Hyderabad into a health hub. On the infrastructure front- road, water and airways are being upgraded with huge investment. Power production in the next year will be taking a high jump. These basic parameters will generate an investor-friendly atmosphere to make things to happen.